Willie Walsh, the chief executive credited with saving state-owned Aer Lingus from bankruptcy, has revealed he quit because the Irish government was resisting his plans for further job cuts.

Speaking at last week's Aviation Club lunch in London, Walsh said a "conflict" had arisen between "the goals we set in terms of cost reduction and the government's aims in job creation. I had no desire to see that conflict bring the airline down."

Walsh, who walked out last month with his two senior executives, said there was "scope for more job reductions" at the flag carrier, despite a 50% cut in the workforce since 11 September 2001, as competition with low-cost rival Ryanair was so tight on its short-haul routes.

Walsh is tight-lipped on his plans, saying he will have "more idea in a couple of months".

Source: Flight International